PRESS RELEASE
December 10, 2018

FY2018 Mid-year Consolidated Financial Results-YoY revenue grows but profit decreases due to typhoon
impactsKansai Airports
today announced its financial results for the six months ended September 30, 2018,
posting operating revenues of 104.9 billion yen, operating income of 26.6 billion yen, ordinary
income of 20.9 billion yen, and net profit1 of 11.4 billion yen.
Despite the temporary closure of Kansai International Airport (KIX) due to Typhoon Jebi, operating
revenues were up 6% compared to the same period last year, mainly driven by continued strong
demand for air travel through August as well as the start of Kobe Airport operations this past April.
Operating income, however, was down 2% mainly due to amortization of Kobe operating right fromthis April and an increase in depreciation of buildings and facilities refurbished in ITAMI renovationand other projects. Eventually, net profit fell 23% mainly attributable to the typhoon damages
recorded in special loss. In the first half of 2018, Typhoon Jebi resulted in profit decrease anddisaster loss, totaling 9.9 billion yen2.
Consolidated Profit & Loss Statement(in billion yen)

Apr. 2017-

Apr. 2018-

Increase

Sept. 2017

Sept. 2018

(Decrease)

Change(％)

Operating Revenues

99.3

104.9

5.7

+6%

Operating Expenses(52.9)(58.6)

(5.7)

+11%

46.4

46.4

(0.0)

-0%

(19.2)(19.7)(0.6)+3%

Operating Income

27.2

26.6

(0.6)

-2%

Ordinary Income

21.5

20.9

(0.6)

-3%

Net Profit1

14.8

11.4

(3.3)

-23%

EBITDA
Depreciation&

Amortization

1

Net Profit: Net Profit Attributable to Company Shareholders

2

Not represent the final impact of the typhoon

Air Travel Demand
Despite the temporary shutdown of KIX due to Typhoon Jebi, aircraft movements at KIX in thefirst half of fiscal 2018 (April to September) were the second highest figure after the record highmarked in the same period of the previous year. This was primarily driven by an increase ininternational passenger flights to Korea, Hawaii and Southeast Asian nations. On the other hand,
ITAMI saw aircraft movements slightly decrease year-on-year mainly due to flight cancellations
caused by aircraft inspections. Kobe Airport, which joined us this fiscal year, performed wellduring the period. As the result, total aircraft movements—KIX, ITAMI and KOBE combined—
reached 174,000.
Total passenger traffic at KIX fell year over year partly attributable to the impact of the typhoon
despite its international passenger traffic hitting a record high during the period. ITAMI and KOBE
both marked an all-time high in passenger traffic partly due to aircraft upgauging at ITAMI and thestart of new flights between KOBE and Sendai from July last year. The combined number ofpassengers going through KIX, ITAMI and KOBE was 23.72 million.
Apr. 2017 toApr. 2018 to

Increase

Sept. 2017

Sept. 2018

(Decrease)

ATMs (in thousands)

Change (%)

177

174

(3)

-2%

KIX

93

90

(4)

-4%

ITAMI

70

69

(1)

-1%

KOBE

14

15

1

+7%

23.57

23.72

0.14

+1%

KIX

14.13

13.91

(0.21)

-2%

ITAMI

7.87

8.19

0.32

+4%

KOBE

1.58

1.61

0.04

+2%

PAX (in millions)

Consolidated Balance Sheet
As of September 30, 2018, assets and liabilities decreased partly due to reductions in accountpayable and income taxes payable from the end of the previous fiscal year. Total assets were1,738.8 billion yen, with total liabilities amounting to 1,662.1 billion yen.
(in billion yen)
As of Mar. 31, 2018

As of Sept. 30, 2018

Increase (decrease)

166.3

142.0

(24.3)

1,597.6

1,596.8(0.8)

1,763.9

1,738.8(25.1)

80.7

62.8(17.9)

Non-current Liabilities

1,598.5

1,599.3

0.9

Total Liabilities

1,679.2

1,662.1(17.1)

Shareholders' Equity

83.6

75.0

(8.6)

Other Comprehensive Income

0.0

0.4

0.4

Non-controlling Interests

1.1

1.2

0.1

Total Net Assets

84.7

76.7

(8.0)

1,763.9

1,738.8(25.1)

Current Assets
Non-current Assets
Total Assets
Current Liabilities

Total Liabilities and Net Assets*In line with the partial revision of "Accounting standard for tax effect accounting", the consolidated balance sheets havebeen reclassified as of the end of fiscal 2017.

【Contact information for inquires】
Kansai Airports
Branding ＆ Communications Team,
Planning & Administration
TEL: +81-72-455-2201

Kansai Airports was established by a consortium made up of VINCI Airports and ORIX Corporation as its core
members. Kansai Airports took over the operations of Kansai International Airport (“KIX”) and Osaka International
Airport (“ITAMI”) from New Kansai International Airport Company (“NKIAC”) and has been operating the two
airports since April 1, 2016.
Kansai Airports Kobe, Kansai Airports’ wholly-owned subsidiary, took over the operations of Kobe Airport (“KOBE”)
from Kobe City and started its business as an operating company on April 1, 2018.
Under the concept of “One Kansai Airports Group”, Kansai Airports group strives to continuously improve its
services for all airport guests through appropriate investments and efficient operations, with safety and security
being the top priority. Kansai Airports group aims to maximize the potential of the three airports, for the benefit of
the communities they serve.
For more information, please visit：http://www.kansai-airports.co.jp/en/

Kansai Airports
Location

1-banchi, Senshu-kuko kita,
Izumisano-shi, Osaka

Shareholders

ORIX 40%,VINCI Airports 40%,
Other investors 20%1

Company
Representatives

Representative Director and CEO:Yoshiyuki Yamaya
Representative Director and Co-CEO: Emmanuel Menanteau

Business Scope

Operation and management services, etc. of Kansai International Airport and Osaka
International Airport

Kansai Airports Kobe
Location

1-ban, Kobe-kuko, Chuo-ku, Kobe-shi,
Hyogo

Shareholder

Kansai Airports 100％Company
Representatives

Representative Director and CEO: Yoshiyuki Yamaya
Representative Director and Co-CEO: Emmanuel Menanteau

Business Scope

Operation and management services, etc. of Kobe Airport

ORIX Corporation (TSE: 8591; NYSE: IX) is an opportunistic, diversified, innovation-driven global powerhousewith a proven track record of profitability. Established in 1964, ORIX at present operates a diverse portfolio of
businesses in the operations, financial services, and investment spaces. ORIX’s highly complementary businessactivities span industries including: energy, private equity, infrastructure, automotive, ship and aircraft, real estate
and retail financial services. ORIX has also spread its business globally by establishing locations in a total of 38
countries and regions across the world. Through its business activities, ORIX has long been committed tocorporate citizenship and environmental sustainability. For more details, please visit our website:
http://www.orix.co.jp/grp/en/

VINCI Airports, a top 5 global player in the international airport sector, manages the development and operationsof 44 airports located in France, Portugal (including the hub of Lisbon), United-Kingdom, Sweden, Cambodia,
Japan, United States of America, Dominican Republic, Costa Rica, Chile and Brazil. Served by more than 250
airlines, VINCI Airports’ network handled 180 million passengers in 2017.
Through its expertise as a comprehensive integrator and the professionalism of its 12,000 employees, VINCIAirports develops, finances, builds and operates airports, leveraging its investment capability, international
network and know-how to optimize the management and performance of existing airport infrastructure, facility
extensions and new construction. In 2017, its annual revenue for managed activities amounted to €3.2 bn, for a
consolidated revenue of €1.4 bn.
More comprehensive information is available on www.vinci-airports.com
1

ASICS Corporation; Iwatani Corporation; Osaka Gas Co., Ltd.; Obayashi Corporation; OMRON Corporation; The Kansai Electric Power Company, Incorporated; KintetsuGroup Holding Co., Ltd.; Keihan Holdings Co., Ltd.; Suntory Holdings Limited; JTB Corp.; Sekisui House, Ltd.; Daikin Industries, Ltd.; Daiwa House Industry Co., Ltd.;
Takenaka Corporation; Nankai Electric Railway Co., Ltd.; NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION; Panasonic Corporation; Hankyu Hanshin Holdings,
Inc.; Rengo Co., Ltd.; The Senshu Ikeda Bank, Ltd.; Kiyo Holdings, Inc.; The Bank of Kyoto, Ltd.; THE SHIGA BANK，LTD.; The Nanto Bank, Ltd.; Nippon Life Insurance
Company; Mizuho Bank, Ltd.; Sumitomo Mitsui Trust Bank, Limited; MUFG Bank, Ltd.; Resona Bank, Limited; and the Private Finance Initiative Promotion Corporation ofJapan.

Consolidated Profit and Loss Statement
From April 1, 2018 to September 30, 2018

(Unit: Million yen)
Operating revenues

104,919

Operating expenses

67,110Gross operating profit

37,809Selling, general and administrative expenses

11,194

Operating income

26,614Non-operating income

559

Interest income and dividends

367

Share of profit of entities accounted for using the equity
method35

Other non-operating income

156

Non-operating expenses

6,278Interest expense

6,217

Commissions

50

Other non-operating expense

10

Ordinary income

20,895Special gain

0

Gain on sales of non-current assets

0Donations received

0

Special loss

4,268

Loss on retirement of non-current assets

109

Removal cost related to replacement investment

617

Loss on disaster

819

Provision of allowance for loss on disaster
Impairment loss

2,722
0

Profit before income taxes

16,627

Income taxes-current

6,748

Income taxes-deferred△ 1,705

Profit11,584

Profit attributable to non-controlling interests

142

Profit attributable to owners of the parent

11,442

Figures under one million yen are rounded down to the nearest million.

Consolidated Balance Sheet
As of September 30, 2018
(Unit: Million yen)

AssetsCurrent assets
Cash and deposits

Liabilities
142,040

Current liabilities

62,782

102,417

Accounts payable - trade

2,571

Accounts receivable - trade

7,011

Accounts payable - other

8,238

Merchandise inventories

5,530

Accrued expenses

4,930

Raw materials and supplies

1,145

Guarantee deposits refundable
within one year
Accounts receivable - other
Other
Allowance for doubtful accounts

Non-current assets

13,236

Current portion of long-term loans
payableCurrent portion of liabilities for theright to operate public facilities

29,532

7,666

Income taxes payable

5,660

5,031

Provision for bonuses

1,067

△0

1,596,773

Provision for point card certificates

2,722

Other

4,802

Non-current liabilities

20,884

Bonds payable

Buildings and structures

3,652

Long-term loans payable

Machinery, equipment andvehicles

7,688

Liabilities for the right to operate
public facilities

604

85

Provision for loss on disaster

Property, plant and equipment

Land

3,170

1,599,322
4,860

Deferred tax liabilities

179,157
1,356,929
15Construction in progress

4,388

Provision for special repairs

46,861

Other

4,550

Liability for retirement benefits

4,101

1,452,332

Other

7,395

Right to operate public facilities

1,435,200

Total liabilities

Replacement investment assets

15,912

Other

1,219

Shareholders' equity

75,024

Investments and other assets

123,556

Capital stock

25,000Investment securities

1,574

Capital surplus

25,000Retained earnings

25,024

Intangible assets

Asset for retirement benefits

228

1,662,104

Net assets

Guarantee deposits

115,053

Accumulated other comprehensive

438

Deferred tax assets

6,056

Valuation difference on availablefor-sale securities

94

Other

652

Deferred gains or losses on hedge

343

Allowance for doubtful accounts△8

Total assets

1,738,814

Figures under one million yen are rounded down to the nearest million.

Non-controlling interests

1,247

Total net assets

76,710Total liabilities and net assets

1,738,814

FY2018 Mid-year Consolidated Financial Results
Presented Dec. 10, 2018

AgendaOverview of Mid-year Consolidated Results
Revenue Drivers
Recovery Status Following Typhoon Jebi

1

3空港の絵にOverview of Mid-year Consolidated Results2

Revenues increase YoY, but overall profit decreases due to typhoon damage(in billion yen)

1. Strong air traffic growth through Aug.
➢ Air passengers increased, mainly for KIX
Int’l➢ Non-aero revenues outpaced passenger
traffic growth

2. Impact of Typhoon Jebi
➢ Passenger numbers & operating revenues
decreased by around 50% in Sept., but
H12 revenues posted positive growththanks to strong performance through
Aug.

H12
Apr. 2017 –Apr. 2018 –Sept. 2017
Sept. 2018

Change％Operating
Revenues

99.3

104.9

5.7

+6%

EBITDA

46.4

46.4

(0.0)

-0%

Operating
Income

27.2

26.６

(0.6)

-2%

Ordinary
Income

21.5

20.9

(0.6)

-3%

Net Profit1

14.8

11.4

(3.3)

-23%

1“Net Profit” represents “Net Profit Attributable to Parent Company Shareholders.”
2 ”H1” = First half of FY2018, the period of Apr. – Sept. 20183

Typhoon Impact
 Typhoon Jebi resulted in profit decrease and disaster loss, totaling 9.9 billion yen*.
(in billion yen )-8.2

Operating Revenues
Aero

-3.6

Non-aero-4.6

Cost of Sales+1.9

Loss on disaster-0.8

Provision of allowance for loss on disaster

-2.7

Total

-9.9

Example· Building repair (roof, eaves of cargo
warehouse)· Additional shuttle bus operation· Repairs to facilities related to disasterprevention and machinery· Temporary restoration of power supply
equipment, and rental,
installation and removal of generators＊These do not represent final impact of typhoon.

4Business growth driven by strong non-aero revenue through August(in billion yen)
Apr. 2017 Sept. 2017

Apr. 2018 Sept. 2018

Change

％

99.3

104.9

5.7

+6%

Typhoon impact: -8.2bn

Aero

43.4

42.8

(0.6)

-1%

Typhoon impact: -3.6bn

Non-aero

55.9

62.1

6.2

+11%

Typhoon impact: -4.6bn

Operating expenses (excl. D&A)

(52.9)(58.6)

(5.7)

+11%

Typhoon impact: +1.9bn

EBITDA

46.4

46.4

(0.0)

-0%

Depreciation & amortization(19.2)(19.7)(0.6)+3%

Operating income

27.2

26.6

(0.6)

-2%

Non-operating profit and loss

(5.7)

(5.7)

0.0

-0%

Ordinary income

21.5

20.9

(0.6)

-3%

Special gain and loss

0.2

(4.3)

(4.4)

-

Income taxes, profit attributable tonon-controlling interests

(6.9)

(5.2)

1.7

-24%

Net profit1

14.8

11.4

(3.3)

-23%

Operating revenues

Notes

Typhoon impact:-3.5bn

1“Net Profit” represents “Net Profit Attributable to Company Shareholders.”

5

EBITDA Analysis: Achieves 46.4 billion yen, the same level as H1 FY2017(in billion yen)

5.2

6

Balance Sheet(in billion yen)
As of Mar. 31, 2018

As of Sept. 30, 2018

166.3

142.0

(24.3)

Non-current assets

1,597.6

1,596.8(0.8)

TOTAL ASSETS

1,763.9

1,738.8(25.1)

Current liabilities

80.7

62.8

(17.9)

Non-current liabilities

1,598.5

1,599.3

0.9

TOTAL LIABILITIES

1,679.2

1,662.1(17.1)

Shareholders’ equity

83.6

75.0

(8.6)

Other comprehensive income

0.0

0.4

0.4

Non-controlling interests

1.1

1.2

0.1

84.7

76.7

(8.0)

1,763.9

1,738.8(25.1)

Current assets

Right to Operate
Public Facilities

Debts concerning
Right to Operate
Public Facilities

TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

Change*In line with the partial revision of "Accounting standard for tax effect accounting“,
the consolidated balance sheets have been reclassified as of the end of fiscal 2017.

7

Revenue Drivers
8

Aero: Record-high H1 passenger traffic at 3 airports combined Posted record passenger traffic at all
three airports combined for the H1
period despite the typhoon andearthquake. However, total aircraft
movements declined 2% YoY.
 Posted record-high H1 performance for
non-Japanese passengers on int’l flights

 ITAMI passengers: Up 4% YoY
 KOBE passengers: Record-high H1
performance

Apr. 2017Sept. 2017

Apr. 2018Sept. 2018

Change

177

174

(3)

-2%

KIX

93

90

(4)

-4%

ITAMI

70

69

(1)

-1%

KOBE

14

15

1

+7%

Passengers(in millions)

23.57

23.72

0.14

+1%

KIX

14.13

13.91

(0.21)-2%

International
passengers

10.60

10.76

0.16

+1%

Japanese

3.24

3.25

0.01

+0%

Non-Japanese

7.26

7.41

0.15

+2%

ITAMI

7.87

8.19

0.32

+4%

KOBE

1.58

1.61

0.04

+2%

ATMs
(in thousands)％

9

Aero: KIX achieves strong int’l passenger gains through August
Exceeded YoY growth rate through August in all regions except Taiwan.
Increased passenger traffic on routes to China by 10% YoY, which drove strong growth. South Korea andHong Kong routes were affected by the northern Osaka earthquake in June, slowing growth.

H1 FY2018 Int’l pax share by region
4%

5%

2% 1%

20%

Apr-Aug
YoY(+14%)*

H1 FY2018 Int’l pax YoY change by region(+23%)

+10%

11%

27%

10%

+4%

(+12%)

(+6%)

(-5%)

(+20%)

(+8%)

(+3%)

-2%

-4%

(+1%)

+9%
+3%

0%

12%
15%

23%

-3%

-10%

-6%

-12%
-20%
Korea
SE Asia
TaiwanN. America (incl.Hawaii)
OthersChina
Hong Kong, Macau
EuropeOceania, Guam

Korea

China

SE Asia

HongKong,
Macau

TaiwanN. America(incl.Hawaii)

EuropeOceania,
Guam

Others*YoY change for the Apr-Aug period in brackets

Source: Kansai Airports Traffic Report10

Aero: New passenger routes for H1 FY2018
KIX international

Domestic

Muan (Apr 30-)
New route
Cheonju (May 3-)
New route

KIX-Niigata(Mar 1-)
New route

KIX-Kushiro(Aug 1-)
New route

Cheonju (Jul 21-)

Guam (Jul 21-)
Clark (Mar 27-)
New route11

International Cargo: 25 consecutive months of growth
At 390,000 tonnes in H1, KIX int’l cargo volume was down 4% YoY due to the impact of Typhoon Jebi.
However, through August, it marked 25 consecutive months of YoY increase.
KIX Int’l cargo volume YoY in FY18 Apr-Nov period【千トン】(In thousand
tons)
FY2017FY20182017年度
2018年度(in billion
yen)
【十億円】
Amount
貿易額
90
5,000
4,264
(+1%)
80
(+11%)(-3%)(+6%)(-10%)(+7%) (+12%) (+7%)
4,500
70

Cargo volume in H1 FY16 – FY18
(In thousand【千トン】 tons)

Volume
貨物量

4,713

500

450

4,216

400

4,000

60

350

3,500

300

3,000

250

2,500

40

2,000

30

1,500

20

100

1,000

10

50

500

0

0

0

200
150

350

2016

405

2017

389
(-4%)

50
(-60%)

4月
Apr

5月
May

6月
Jun

7月
Jul

8月
Aug

9月
Sept

10月
Oct

11月
Nov

2018
Source: Kansai Airports Traffic Report12Non-Aero: Duty-free sales drive record-high revenue Posted record ¥62.1bn in revenue, up 11% YoY (outstripped YoY traffic growth of 1%)
 Duty-free sales rose 34% YoY, driving strong Non-aero revenue growth Doubled sales at shops in renovated ITAMI central area following its reopening in April
H1 FY2018 Non-Aero Revenue Growth (%)

H1 FY2018 Duty-Free Sales by Nationality (%)（in billion yen）

70
60
50
40
30
20
10
0

55.9
OthersRetail
F&B

62.1

Others
Korean11%

5%+3%
Japanese-5%12%Chinese72%

Duty-free
shops

+34%

2017

2018
13

Non-aero Revenue Share Grows
 Non-aero revenue share increased 3% YoY to 59%
 Aero:¥0.6 billion decrease due to typhoon impact,
despite increased revenue from the start of Kobe Airport operations
 Non-aero:¥6.2 billion increase driven by revenue growth from duty-free shops
H1 FY2018

H1 FY2017¥55.9bn

56%¥43.4bn

44%¥62.1bn¥42.8bn＋6.2bn-0.6bn59%
Total ¥99.3bn

41%

Aero
Non-Aero

Total ¥104.9bn

14

Recovery Status Following
Typhoon Jebi
15

KIX passenger and cargo volume have normalized Number of passengers: Increased 3% YoY from October International cargo: Volume handled in October was down 3% from the previous year, but rose 1%
YoY in November. All international freight flights have resumed.
 Number of flights: Scheduled international flights for the winter season reached a record high in
2018.
Scheduled int’l flights (winter season)
Number of passengers（YoY）

Int’l cargo volume（YoY）

旅客数全体
Total

20% 14%
30% 15%
14% 10%20% 13%
10% 5%
0%-10%-2% -2%
-20%
-30%
-40%
-50%
-60%
Apr May Jun

国際線旅客数
Int’l

3%
0%

7%
3%

-9%

-9%

Jul

Aug

国内線旅客数
Domestic

5%
3%

-45%
-48%

-6%

-49%
Sept Oct

Passenger

Total
総便数

flights/week
（便/週）

旅客便
flightCargo

貨物便
flight

（計画）
Plan

80%
60%
40%
20%
0%
-20%
-40%
-60%
-80%

7% 12% 7%

6% 11%

-3%

1%

-60%

Apr May Jun Jul

Aug Sept Oct Nov

1,400
1,200
1,000
800
600
400
200
0

1,216 1,248
770
489
438
51
95

810

868

942

1,356

1,088 1,115

1,451

1,217

1,309

726 802624 681146 129 142 140 128

133

139

142

11

16

17

18

12

13

14

15

16